Exercise 20-27A (Algo) Merchandising: Preparing a cash budget LO P4 Use the following Information to prepare the July cash budget for Acco Company. Ignore the "Loan activity" section of the budget a. Beginning cash balance on July 1: $73,000. b. Budgeted cash receipts from sales: 35% is collected in the month of sale, 50% In the next month, and 15% In the second month aft sale. Sales amounts are May (actual), $1,930,000; June (actual), $1,240,000; and July (budgeted), $1,590,000. c. Budgeted cash payments on merchandise purchases: 60% In the month of purchase and 40% In the month following purchase. Purchase amounts are June (actual), $460,000; and July (budgeted), $710,000. d. Budgeted cash payments for salaries in July: $320,000. e. Budgeted cash payments for sales commissions for July: $190,000. f. Budgeted cash payment for Income taxes in July: $70,000. g. Budgeted cash payment for loan Interest In July: $6,000. Complete this question by entering your answers in the tabs below. Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales -Collected in- Total Sales May June July July 31 Accounts Receivable Credit sales from: May $ 1,930,000 June 1,240,000 July 1,590,000 Totals $ 4,760,000 $ 0 $ 0 $ 0 $ 0 Calculation of Cash Payments for Merchandise Total Purchases June -Paid in---- - July Purchases from: June $ 460,000 July Totals $ 710,000 1,170,000 S 0 $ 0 < Calculation Cash Budget > July 31 Accounts payable $ 0